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Statement of Cash FlowsIndirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec.

Statement of Cash FlowsIndirect Method

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:

Dec. 31, 20Y2 Dec. 31, 20Y1
Assets
Cash $ 792,160 $ 851,660
Accounts receivable (net) 720,870 657,490
Inventories 1,093,180 1,006,040
Prepaid expenses 25,350 30,100
Land 272,500 411,920
Buildings 1,259,530 776,320
Accumulated depreciation-buildings (356,470) (332,710)
Equipment 443,610 392,120
Accumulated depreciation-equipment (121,990) (137,040)
Total assets $4,128,740 $3,655,900
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $ 784,460 $ 827,810
Bonds payable 231,210 0
Common stock, $20 par 273,000 101,000
Paid-in capital: Excess of issue price over par-common stock 654,000 482,000
Retained earnings 2,186,070 2,245,090
Total liabilities and stockholders' equity $4,128,740 $3,655,900

The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows:

ACCOUNT Land ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 411,920
Apr. 20 Realized $129,700 cash from sale 139,420 272,500

ACCOUNT Buildings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 776,320
Apr. 20 Acquired for cash 483,210 1,259,530

ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 332,710
Dec. 31 Depreciation for year 23,760 356,470

ACCOUNT Equipment ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 392,120
Jan. 26 Discarded, no salvage 43,100 349,020
Aug. 11 Purchased for cash 94,590 443,610

ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 137,040
Jan. 26 Equipment discarded 43,100 93,940
Dec. 31 Depreciation for year 28,050 121,990

ACCOUNT Bonds Payable ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
May 1 Issued 20-year bonds 231,210 231,210

ACCOUNT Common Stock, $20 par ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 101,000
Dec. 7 Issued 8,600 shares of common stock for $40 per share 172,000 273,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 482,000
Dec. 7 Issued 8,600 shares of common stock for $40 per share 172,000 654,000

ACCOUNT Retained Earnings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 2,245,090
Dec. 31 Net loss 28,420 2,216,670
Dec. 31 Cash dividends 30,600 2,186,070

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Whitman Co.
Statement of Cash Flows
For the Year Ended December 31, 20Y2
Cash flows from operating activities:
$
Adjustments to reconcile net loss to net cashflow from operating activities:
Changes in current operating assets and liabilities:
Net cash flow used for operating activities $
Cash flows from investing activities:
$
Net cash flow used for investing activities
Cash flows from financing activities:
$
Net cash flow from financing activities
$
Cash at the beginning of the year
Cash at the end of the year $

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